How to deal with a potential investor and if I should even get investment?

I’m 18 years old and own a construction business. (Might not seem like a start up but trust me the way I’m doing things it is 😂) The brother of a client I am working for approached me yesterday and said he’s impressed with my Business and the skills I have as an entrepreneur.

He said he’d like to discuss investing in my company.

I told him the amount I’ve been trying to save to take my business to the next level is £150,000 He said that amount of money wouldn’t be a problem.

Note: he did not say he wants to invest in my company, just that he’d like to discuss it further in the future.

What I want to know is, should I accept investment even if I’m most likely going to have that money in the nearish future? It should take me a year or two to get that money the way my operations are now.

And my second question is, if I decide to invest, how would I go about discussions etc. and what is the protocol?

What could I do to make receiving the investment more likely if discussions are to occur shortly?

Note: he does not know that I am 18, and I look around 23-24, so I don’t know if that would affect anything in the future.

Any help would be appreciated.

Thanks for your reply. In advance.

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Startups – Rapid Growth and Innovation is in Our Very Nature!

Angel investor to help scale my business

Hello, I’m looking for help to scale my tiny business into a small one. I was able to bootstrap to start a tiny business since I escaped my family at 18 when my dad tried to marry me to a man in his 40s and I have since not returned ever since despite how hard things are getting for me for fear of being honor killed by my father and his brothers. since my exile and although I am able to survive and take care of my basic needs from my current profit, I still cannot save enough to exit my this country and I don’t believe I’m far away as I want from my abusive family.

I’d be able to pay back with interest if possible. It’s been very difficult as an under-serviced person in a 3rd world country to get a loan without a collateral of a car or property, even when I have the potential to pay back.

I’d appreciate whatever support you can render me and my business. I’m not scam so I am open to being vetted by you or anyone you wish thank you

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Startups – Rapid Growth and Innovation is in Our Very Nature!

Anyone have a list of investor leads with email?

Hey everyone,

I'm looking for a list of investor leads so I can do a little email campaign with my deck / business plan. Anyone have a place to find or purchase this type of information?

I'm finding that reaching out personally over LinkedIn and manually finding the contact emails on various VC sites as incredibly time consuming and ineffective.

Thanks!

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Startups – Rapid Growth and Innovation is in Our Very Nature!

Why one Databricks investor thinks the company may be undervalued

The recent Databricks funding round, a $ 1 billion investment at a $ 28 billion valuation, was one of the year’s most notable private investments so far.

For Databricks signaled its IPO readiness by disclosing to TechCrunch last year that it had scaled its revenue run rate from $ 200 million to $ 350 million in a year, so the new capital looked like the capstone on its private fundraising before an eventual public debut.


The Exchange explores startups, markets and money. Read it every morning on Extra Crunch, or get The Exchange newsletter every Saturday.


But I did have a few questions, starting with the price of the round.

At a $ 28 billion valuation and ARR of $ 425 million, Databricks is valued at around 66x top line. That’s steep, if not the highest number we can dredge up on the public markets. Of course, for Databricks shareholders, seeing the value of their stock rise so quickly is hardly a bad thing. They are hardly going to complain about having more paper wealth.

But what about the investor perspective? Does the price really make sense? The Exchange caught up with Battery Ventures’ Dharmesh Thakker earlier this week to discuss a number of things, one of which was Databricks’ round and pricing. Thakker is named in the Databricks Series D funding announcement, which brought Battery into the company.

What was surprising about our conversation was not that Thakker was bullish on Databricks — a company that he and his firm have backed since its $ 140 million, 2017 round when the company was worth just under $ 1 billion. What surprised me was that he thinks its new $ 28 billion valuation might be a little low.

Intriguing, yeah? So this morning for both of us, I’ve pulled out quotes from our chat to help explain how Thakker views the market for Databricks, unicorns at scale more broadly through the lens of risk-adjusted investing, and the scale of the market some unicorns are playing in.

At the close, we’ll remind ourselves what Databricks CEO Ali Ghodsi told TechCrunch when we asked him the same question. Let’s go!

Databricks at $ 28 billion

Here’s how the valuation part of my chat with the Battery Ventures’ investor went down:

The Exchange: I want to talk about Databricks, because I spoke to [CEO] Ali [Ghodsi] yesterday about this round, and hot damn, it’s a lot of money at a valuation that is roughly 64x ARR, give or take. I don’t understand the price, and I know it’s a boring thing to talk about. [It’s a] great company, I get their market, I’ve talked to them a bunch, I know their revenue numbers. [But] I don’t understand the price, and I was hoping you could tell me why I’m being too conservative.

Dharmesh Thakker:  I, for what it’s worth, think [the price] fair. If anything, I think it is on the lower end — he could have done better, frankly. But I think it comes down to three major things, right?

One is the addressable market. Just think about the addressable market of data. If there’s a trillion dollars spent in software or technology, I think you and I would be both hard pressed to say, almost all of that [isn’t] influenced by some data-oriented decisioning. Whether it’s digital transformation, whether it’s analytics, data is everywhere. So the TAM is massive … I think you and I both agree on that, whether it is $ 20 billion or $ 80 billion — it’s massive.

Startups – TechCrunch

Here’s why the Dutch company behind startup competition ‘Get in the Ring’ has merged with The Hague investor VenturesOne

Unknown Group

Netherlands-based venture capital firm VenturesOne Group and Unknown Group, a global innovation agency, have announced the completion of their merger. The newly merged company will be known as Unknown Group, located in The Hague and Singapore.

About Unknown Group

Founded in 2008, Unknown is an early-stage venture capital and business development firm. They believe in unlocking the future business potential by internal and external venturing. “We go beyond known with the founders of impactful ventures. Venturing shoulder to shoulder, with skin in the game, empowering them along their journey with a global scaling network and entrepreneurial expertise,” adds Edward de Jager, Chairman of Unknown Group.

The company has developed a global network in innovation and entrepreneurship and has partnered with more than 200 corporate and governmental organisations to scale open innovation and corporate venturing activities, such as DSM, Fujitsu, and NATO. 

Unknown Group’s portfolio includes the Global School for Entrepreneurship – an accredited University of Applied Sciences with a 4-year full-time bachelor program on entrepreneurship, and Cupola XS – knowledge and innovation centre for SME companies in the renovated prison dome of Haarlem, the Netherlands.

Get in the Ring

The agency also organises its own global startup competition, “Get in the Ring”. This competition provides access to startups and talented founders in more than 220 cities, offering a global platform for thousands of founders every year to test, validate and scale their solutions.

“We use the Sustainable Development Goals as a guide to transforming our world using unconventional solutions,” says Get in the Ring. 

According to the competition, previous competition winners include Indonesia’s IoT fishfeeding machine maker eFishery, Israel’s grasshopper producer for the food industry Hargol FoodTech and South Korea’s braille smartwatch maker Dot Incorporate each of which has subsequently secured significant investments. It claims that the winner of the competition in 2013, EyeVerify, was acquired by Ant Financial three years later for $ 100M (approx €83M).

Aim of this merger

“Unknown stands for supporting ventures that are intoxicated by the possibilities of global impact, but are real about forging an organic and sustainable growth path,” says Hendrik Halbe, CEO Unknown Group.

Unknown Group supports founders and industry leaders, and has experience in global startup scouting and corporate venturing, while VenturesOne has investment expertise. With both combined, the ambition is to increase the success rate of innovations that address pressing local and global challenges.

About VenturesOne

Established in 1986, VenturesOne is a venture capital investment company committed to scaling companies from “nothing, to something, to something great”. 

VenturesOne has built a diversified portfolio and investment structure and scaled companies from seed investment to IPO. 

Its investment portfolio includes programmatic advertising market leader- JustPremium; mechanical exoskeleton pioneer – Skelex; natural skincare and cosmetics manufacturer – Naif; and provider of data analysis from satellite and aerial imagery – Geospatial Insight; amongst other shareholdings in food, education, and insurtech.

Startups – Silicon Canals

Question About Safe Agreements (Why you shouldn’t give an investor a fixed amount?)

So like a lot of startups, I had a co-founder that didn't work out. He was well-off, which was great because he could actually put in real money, but due to his poor work ethic, incompetence, and the fact that he basically started buying things that weren't valuable at the moment and hanging that over our heads to justify 25% equity, we cut ties. Naturally, he was upset and threatened to sue for his 25% but after calming him down to avoid getting buried in court, we agreed to give him 5% no strings attached equity.

So he basically sent us a safe agreement and after looking it over with our lawyer, he mentioned that the only real issue he's seeing with this is the fact that there isn't a premium attached to this, which is usually the case. From what I read, most safe agreements have a cap and a premium in place for the investor. He said that it's possible not having a premium in place could hurt us if we go after investors but I'm having a very hard time understanding exactly why.

He specifically said that it, "… could hurt you with later investors if the price per share is significantly better than the price you are seeking from later investors."

Does anyone know what that means, exactly? From what I'm reading, a cap and a premium are there to benefit the investor and that it could actually increase their equity holding, which is what we want to avoid because as it stands, he's basically dead equity, so 5% is a bit of a dent, but more could prove detrimental.

I guess I'm confused because I don't exactly know why having a fixed amount for him could hurt us with getting future investments. If anyone is able to clarify this, I would be eternally grateful because I need to give this person an answer soon.

Thank you in advance!

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Startups – Rapid Growth and Innovation is in Our Very Nature!